FMS - Why Dialysis Stocks Plunged Today
2023-10-11 12:51:59 ET
Shares of several major dialysis stocks plunged on Wednesday after Novo Nordisk (NYSE: NVO) indicated one of its diabetes treatments could also be used to treat chronic kidney disease.
Dialysis products and services providers were broadly negative in early trading, including drops of around 19% each as of 12:00 p.m. EDT for DaVita (NYSE: DVA) , Outset Medical (NASDAQ: OM) , and Fresenius Medical (NYSE: FMS) . Novo Nordisk stock was up around 4% on the news.
In a press release issued after the market closed yesterday, Novo Nordisk announced the decision to stop its kidney outcomes trial FLOW nearly a year earlier than expected. The FLOW trial began in 2019 and was studying the effect of a once-weekly dose of semaglutide versus a placebo in on the progression of renal impairment in 3,500 people with type 2 diabetes and chronic kidney disease.
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Why Dialysis Stocks Plunged Today